• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, October 28, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

BoG Cracks the Whip on Loan Fraud — Sanctions to Hit Borrowers and Directors Alike

M.Cby M.C
August 14, 2025
Reading Time: 4 mins read
Dr. Addison Highlights Strategic Role of BoG’s $250M Headquarters

Newly Commissioned BOG Headquarters

The Bank of Ghana (BoG) has launched a sweeping crackdown on wilful loan defaulters in a move aimed at tightening credit discipline, restoring lender confidence, and safeguarding the stability of the financial sector.

The new directive, issued on August 13 to all regulated financial institutions, targets individuals and corporate entities that deliberately evade loan repayment or secure credit through fraudulent means.

Rising non-performing loans (NPLs) have been a pressing concern for Ghana’s financial system, undermining the profitability and liquidity of banks. According to the BoG, the latest measure is designed to prevent borrowers from abusing credit facilities and to ensure funds are used for their intended purposes.

RelatedPosts

ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3

Banking Sector Turns Corner as Bad Debts Plunge 46% — NPL Ratio Drops to 20.8%

BoG Hikes Forex Bureau Licence Renewal Fee by 150%

Under the new rules, borrowers who divert funds, present falsified documents or collateral, or refuse repayment despite having the means will face severe consequences. The BoG emphasises that such conduct not only erodes trust between lenders and borrowers but also threatens the overall health of the banking sector.

The Five-Year Credit Ban and Beyond

The directive imposes strict penalties on wilful defaulters. Once the central bank approves a loan write-off, the borrower will be cut off from all regulated credit facilities for a period equivalent to twice the time between the write-off approval and the debt’s full settlement.

Repeat offenders—those named twice or more within a decade—will automatically face a five-year ban from accessing credit, or longer if the calculated prohibition exceeds that period. This marks one of the most aggressive stances the BoG has taken against credit misconduct in recent years.

ADVERTISEMENT

In a significant transparency measure, the BoG requires all commercial banks and regulated lenders to publish the names of wilful defaulters twice a year—on June 30 and December 31—in at least two national newspapers and on their official websites.

This “name and shame” approach is expected to serve as a strong deterrent to potential offenders while informing other lenders of high-risk borrowers. For many, the reputational damage could be more costly than the ban itself.

Directors, Guarantors, and Associates Not Spared

The BoG’s directive does not stop at the primary borrower. Sanctions will also apply to company directors, guarantors, and associates found to have aided in fraudulent conduct or the diversion of loan funds.

By extending accountability to those who facilitate or enable loan fraud, the central bank aims to close loopholes that allow defaulters to hide behind corporate structures or proxies. This comprehensive approach ensures that all parties involved in credit malpractice are held to account.

Regaining Access to Credit

Defaulters who wish to regain access to credit will have to meet stringent requirements. They must: Repay all outstanding debts and associated fees in full; Clear their records with recognised credit bureaus.

The BoG believes these conditions will promote responsible borrowing and lending, ensuring that only trustworthy borrowers are allowed back into the credit market.

This directive forms part of the central bank’s broader strategy to strengthen the resilience of Ghana’s financial system. By tightening lending rules, the BoG aims to curb the growth of NPLs, improve the profitability of banks, and enhance overall liquidity in the sector.

The crackdown also sends a clear message to both borrowers and lenders: credit is a privilege, not a right, and its abuse will not be tolerated.

Industry Reaction and Implications

While some industry observers welcome the move as necessary for restoring discipline, others have raised concerns about its potential impact on credit access, particularly for SMEs. Critics argue that the fear of public shaming might discourage genuine borrowers facing temporary repayment difficulties from seeking loans.

However, proponents counter that the directive clearly distinguishes between borrowers in genuine financial distress and those wilfully defaulting despite having the capacity to pay. By targeting deliberate misconduct, the BoG aims to maintain a fair and transparent lending environment.

With this directive, the Bank of Ghana has made it clear that loan fraud will not go unpunished. Borrowers, directors, guarantors, and associates who engage in fraudulent practices or misuse credit facilities now face not only financial penalties but also public exposure and long-term exclusion from the regulated credit market.

READ ALSO: Integrated Tax Systems Could Supercharge Ghana’s Economy – World Bank

Tags: Banking sectorBoGcredit banghanaloan fraudNon-performing loans
ShareTweetShareSendSend
Please login to join discussion
Previous Post

Commercial Transport Operators Demand Urgent Fix of Pokuase–Nsawam Road

Next Post

President Mahama Supports Ga Traditional Council Ahead of Homowo Festival

Related Posts

ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3
Banking

ADB Delivers GH¢447m Pre-Tax Profit in Stunning Turnaround in Q3

October 27, 2025
Banking Sector Turns Corner as Bad Debts Plunge 46% — NPL Ratio Drops to 20.8%
Banking

Banking Sector Turns Corner as Bad Debts Plunge 46% — NPL Ratio Drops to 20.8%

October 27, 2025
BoG Hikes Forex Bureau Licence Renewal Fee by 150%
Banking

BoG Hikes Forex Bureau Licence Renewal Fee by 150%

October 26, 2025
Ghana’s Total Credit Plummets 39% Year-on-Year to GH¢8.6bn in August 2025
Banking

Ghana’s Total Credit Plummets 39% Year-on-Year to GH¢8.6bn in August 2025

October 24, 2025
BoG Introduces Smart Supervision Tools for Banks and Fintechs
Banking

BoG Introduces Smart Supervision Tools for Banks and Fintechs

October 24, 2025
OmniBSIC’s ‘Limitless Banking’ Strategy Breaks Barriers for Persons with Disabilities
Banking

OmniBSIC’s ‘Limitless Banking’ Strategy Breaks Barriers for Persons with Disabilities

October 23, 2025
Dr. Theo Acheampong, Economist and Political Risk Analyst
Extractives/Energy

Expert Warns Ghana Risks Losing Oil Competitiveness to Namibia, Senegal

by Prince AgyapongOctober 28, 2025
Asia

China, ASEAN Upgrade Free Trade Agreement

by Comfort AmpomaaOctober 28, 2025
Cabinet Approves Fund for NAFCO to Purchase Excess Grain Supply.
Agribusiness

Cabinet Approves New Funds to NAFCO – Majority Leader

by Michael Teye-Bio NaduteyOctober 28, 2025
General News

Ghana Set to Triple Road Infrastructure by 2047 – a Smarter Transport Network

by Evans Junior OwuOctober 28, 2025
Hon. Alexander Kwamena Afenyo-Markin, Minority Leader and Member of Parliament for Efutu constituency
General News

Competition For Flagbearer Position an Indication of a Party with a future – Minority Leader

by Emmanuel Tibila BoasahOctober 28, 2025
Dr. Nii Moi Thompson, Chairman of the NDPC
General News

National Development Chair Warns Accra’s Monopoly Hurts Rural Growth, Pushes New Oversight

by Silas Kafui AssemOctober 28, 2025
Dr. Theo Acheampong, Economist and Political Risk Analyst
Cabinet Approves Fund for NAFCO to Purchase Excess Grain Supply.
Hon. Alexander Kwamena Afenyo-Markin, Minority Leader and Member of Parliament for Efutu constituency
Dr. Nii Moi Thompson, Chairman of the NDPC

Recent News

Dr. Theo Acheampong, Economist and Political Risk Analyst

Expert Warns Ghana Risks Losing Oil Competitiveness to Namibia, Senegal

October 28, 2025
6900836bc6d00ca5a3e230e6

China, ASEAN Upgrade Free Trade Agreement

October 28, 2025
Cabinet Approves Fund for NAFCO to Purchase Excess Grain Supply.

Cabinet Approves New Funds to NAFCO – Majority Leader

October 28, 2025
Ghana Road Network

Ghana Set to Triple Road Infrastructure by 2047 – a Smarter Transport Network

October 28, 2025
Hon. Alexander Kwamena Afenyo-Markin, Minority Leader and Member of Parliament for Efutu constituency

Competition For Flagbearer Position an Indication of a Party with a future – Minority Leader

October 28, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address